Bookkeeping and accounting are integral components of any business. Bookkeeping services will ensure that reliable and accurate books are kept for your company, enabling you to make informed decisions promptly to minimise risks and maximise profits. An effective accounting system can have a significant impact on a company’s productivity as well as its profitability.
Companies incorporated in onshore jurisdictions will generally have to prepare and file accounts. Often these accounts must also be audited. In most offshore jurisdictions there is a requirement under local company legislation that directors should prepare accounts and present them to the shareholders at the Annual General Meeting. However, where there is no tax to be assessed on the profits of the company, there is rarely a requirement to present the accounts to any government authority or file them on the public register.
Even if the accounts do not need auditing it is good business practice for them to be prepared in accordance with the relevant companies law so that all shareholders and directors have access to – and can be seen to have access to – relevant financial information upon which proper business decisions can be made.
Bookkeeping and accounting can be extremely time consuming and cost intensive, particularly when you are unfamiliar with local rules and practices. Sovereign has extensive experience of working alongside client companies by providing them with outsourced accounting facilities. In all the countries in which it operates, Sovereign can either offer in-house bookkeeping and accounting services or can recommend a range of accountancy firms that we work with closely.
By outsourcing your accounting facility, you will reduce internal operational costs and allow yourself more time and resources to focus on value-added and revenue generating tasks. A high level of accuracy will also eliminate delays, administrative errors as well as potential fines and penalties.
Companies, wherever they are based, must pay the salaries of their employees in a timely manner. They must also ensure their income tax and social security compliance in terms of withholding, calculations and reporting. Every country’s employment and tax system is different.
Any organisation entering a foreign market faces a number of employment tax compliance-related challenges. Making certain that all obligations and responsibilities are met in a timely and efficient manner in every jurisdiction of operation can be a time consuming and costly process. By outsourcing your payroll you can free up your valuable time and resources to concentrate on the important business of running your company and reduce the risk of heavy penalties resulting from non-compliance.
Sovereign can provide a comprehensive yet flexible outsourced payroll service tailored to each client’s specific requirements. Our experienced professionals ensure that our customers meet their legislative payroll and employment tax obligations in all the international territories in which they operate. We provide a wide range of compliance and payroll audit services, along with practical and up-to-date advice on employment-related issues.
The first stage will involve registering the employer and its employees with the local tax office and the government employment department, recording employment notices and contracts, obtaining bank details of the employer and employee, issuing tax codes and, finally, inserting all that information in the Sovereign payroll system.
Thereafter, on a monthly basis, Sovereign’s payroll services will facilitate:
- Computing employees’ withholdings and net pay;
- Ad hoc additional payments or deductions;
- Preparing and issuing employee pay slips;
- Direct deposit pay into employee bank accounts;
- Expenses and benefits processing and compliance;
- Preparing documentation for new or departing employees;
- Preparing revenues payable and remittance submissions to tax office.
Year-end procedures will also encompass the preparation of tax returns for both the employer and employees and compiling payroll accounting records for the employer.
In addition, through Sovereign Group’s wider offering, we are able to provide private medical insurance as well as occupational pensions plans, which can be integrated into the payroll services system.
Irrespective of whether you are a small organisation taking your first steps in international expansion or an existing multinational company, Sovereign’s payroll expertise and experience across many jurisdictions can ensure that you maximise the efficiency of your operations and remain in compliance with all local legislation and regulation.